Joe, you, good Thank and everyone. morning,
results. provide I'd of into fourth a quarter dive I Before the quick our to like financials, overview
production down First, in ] was year, in sales approximately we $X.X prior reported X% which excluding Market versus just was billion down X%. and FX the approximately quarter over M&A. [
the So full XXX XXX year approximately slightly saw which outgrowth in points. our of basis was below outgrowth of points, basis we sales quarter
operating XX%, performance, Second, on cost continued in controls we margin adjusted This and performance a XX quarter was which up restructuring XX.X%. was at operating This performance us had by and above driven to year strong a adjusted from full across quarter fourth focus business allowed points the operational XXXX. deliver solid basis the strong actions. margin
of guidance Third, which free free we and flow delivered free to flow us in million, $XXX the flow strong million XXXX year. for allowed cash cash had $XXX full cash our outperform
our QX. just were at to over Last turn continuing let's operations walk year's for Slide look billion. QX from X sales year-over-year sales for $X.X a Now
You of see can about a drove that see in weakening XXX sales due well strong decrease sales and foundational outgrowth the year-over-year of as Asia This can North was eProducts basis decrease rest in in to production. which primarily Europe of growth the organic was $XX growth a Then X.X%, you Europe, and as in America strong dollar a market world. points the U.S. million. above
the highlighted EV we we previously $X acquisition declining and on And of saw million lower In challenges quarter China, sales foundational due sales. in the Eldor to of finally, an volumes program, which existing year-over-year. added
this QX. billion Some $X.X in over of of sales all was just
XX. Slide Turning to
can performance the quarter. our for You earnings and cash flow see
operating Our from adjusted operating operating of equating million, income million fourth a compares adjusted XX.X% adjusted ago. to strong operating income X.X% adjusted margin. quarter to $XXX was a or year margin operations from That $XXX continuing
by income the our On reflects adjusted on driven despite on great a profitability declining production M&A, comparable our PowerDrive we and July focus ability business. impact was was operating income of as This in across operating lower performance $XX of is as on million million net basis, excluding of drag environment. our million foreign the restructuring result The and exchange increased a of a This announced a benefit $XX sales. well Eldor deliver our that to $XX cost continued year-over-year. controls impact
XXXX initiatives strong to a year from was which the impact ago repurchases restructuring $XXX timing continuing was offset activity operating to during lower a result a income, was lower share by from as we operations This of the compared the XXXX. as of ago net our fourth customer quarter. continuing flow to a EPS cash million the of interest rate down compared tax result adjusted year executed $XXX Our during operations a expense of $X.XX up quarter, tax effective business and Free that payments. higher million adjusted due was in partially from various and
Our free flow million. the for $XXX strong was full year cash at
Western System the $XXX and each the recorded and to requires performed the sales our had impairment operating fixed our quarter an discounted goodwill to cash to tangible of fourth value perform Battery units out. million of long-term our each business In estimates of briefly unit. finally, during and asset & quarter. for BEV we Systems Charging compare And we flow of that assets. I'd the impairment us years reduced discounted that Due fourth the from prior charges we year, intangible adoption delay and PowerDrive make the cash world, test income like carrying address estimates be and of continuing business of flow to The across to pushed analysis our and
in recorded the a goodwill million fourth As a company charge quarter. impairment result, of $XXX the
and that a also charge future We generation. believe the we items significant foundational matter Western built of earnings our that recorded opinion, plant equipment. company. world have are margin provide million, the these delay cash certain adoption will and of impact profile no margin adoption. continues a is delayed, a primarily to minimal related property, $XX of we BEV to the resilient of flow of compensate important exactly and option noncash with In believe why BEV portfolio be regional pace in note It's to results, have parts on or portfolio The we our and propulsion the strong free technology-focused regional the will
production on for 'XX. XX, on to Next, industry Slide review would perspective our I like global
X% This vehicle commercial includes light XXXX. and weighted global forecast following year, markets in headwinds global industry to our a this of X% volume tariffs. to expect decrease X% We potential be down
Looking weighted from X%, to region, to American vehicle perspective, primarily at by approximately driven we're planning North X% by our inventory and a to markets light headwinds be potential down inflation tariffs. due this for
headwinds. economic X% possible In be signs weighted to of see and down following our X%. growth be a Europe, of economic last comparison a we is expect year-over-year to lower down market impact China, expect And tariffs. market approximately to overall X% as to year's tough This backlog the we the due we to flat in
on year Slide take a With at XX. that our let's in full outlook look mind, now
headwinds just in volume from market highlighted, tariffs we level of as included some industry our assumptions. First, volume have I
net incorporated customers to tariffs but share impact financial limited impact by imported since exception However, include, implementation, not we multiple cost influenced of guidance at suppliers. have the is BorgWarner this of time our our ability our in the and are the the on timing to, with to not any materials and These factors.
our move to let's outlook. Now
Starting weaker sales the year projecting full billion $XX.X total currencies, of of to guidance XXXX. million an from sales expected compared headwind are our XXXX $XXX assumes in with $XX to We currencies range foreign foreign billion.
just highlighted, year. expect the end X% I to markets to our be for we As X% down
However, which our again outperform company XXX that production expect we believe to basis resiliency demonstrates we the to portfolio outgrow XXX by points market the positioned to of once production. is market
Based It's X% important directly to our we organic our guidance sales year-over-year. through headwind basis change note cell customers. prices, battery to from down that outlook, includes our XX lower be to expect we which to a point updated up outgrowth on X% pass our
to switch Now margins. let's
range operating margin to our double year to We delivering expect our to XXXX XX.X%. of the margin margin the conversion full decremental contemplates of adjusted the full year end compared our business a adjusted XX.X% low XX.X% operating low in in be of outlook The digits.
end view in conversion high XXXX teens. the of While an building exceeded off expectations. incremental this well that strong our underlying our outlook performance, as the assumes high We
margin range this year outlook, per on the share. $X.XX sales diluted we're expecting EPS $X.XX full and in Based adjusted to of
year FX be full in decline XXXX XXXX strong cash midpoint due With flow of expect with results versus the range headwinds. to outlook. that, $XXX $XXX the million being XXXX free our that's million We to to a
than appropriately We free across XX result basis initial solid We summarize $XXX our delivered financial Overall, remarks. So of let great the a difficult despite my guidance. million. strong of delivered very XXXX focus a which business. XXXX X.X% performance This generated to our on flow costs managing X.X% cash our margin reflected is in XX.X% our a points margin, of we ahead production and well me results strong XXXX environment. higher was
XXXX, Joe earlier. aligns Now highlighted the look we priorities as outlook our with ahead to
to full points outperform despite an and production cell battery with market expected pricing BEV XXX program XXX headwinds outgrowth of we basis First, from delays. to year to expect continue
Second, effectively, our to margin believe structure in again we of We shows operating manage this deliver even once light our environment. an to XX%. a expect adjusted production above cost ability declining
Finally, we continue navigating backdrop. have our another in year we allow with in flow, market which will business us balance to challenging of uncertain investment-grade to to strong believe combination expect a and our while cash free sheet, invest
XXXX results team extremely to on the market financial globe proud during XXXX and the around their ability and backdrop. As outlook, our strong challenging deliver back results look of BorgWarner and I volatile our a I'm
over like I'd turn back that, call With the to Pat. to
